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How much passive investing is too much?

Warnings that index funds have broken the stock market all imply a threshold: a share of the market at which price discovery fails. Nobody making the argument names it. Owen Lamont, writing in the Financial Analysts Journal, argues that no such number exists short of complete passive ownership, and that what actually determines whether prices stay informative is who is left doing the trading. His case, the strongest peer-reviewed research against it, and what the performance

Robin Powell

I learned to stay disciplined the hard way

It can be hard to stay disciplined in a bear market. In fact, the longer it goes on for, the harder it becomes. What’s more, the...

Robin Powell

Oct 22, 20225 min read

Mutual fund alpha as a predictor of stock returns

By LARRY SWEDROE Mutual funds (a type of institutional investor) are generally considered “smart money” that exploits the behavioral...

Robin Powell

Oct 20, 20227 min read

How good are analysts at forecasting earnings growth?

By LARRY SWEDROE In a recent article for The Evidence Based Investor I showed that while growth stocks have produced higher returns on...

Robin Powell

Oct 18, 20224 min read

Valuations and earnings growth rates

By LARRY SWEDROE The expected rate of growth in future cash flows plays a pivotal role in investment analysis and valuations. It is the...

Robin Powell

Oct 14, 20226 min read

The major incentive problem at the heart of active management

We often hear about the cost issue with active management and the fact that most active funds are effectively priced to fail. But, as JOE...

Robin Powell

Oct 12, 20223 min read

The performance of small value stocks over economic cycles

By LARRY SWEDROE Over the long term, small value stocks have rewarded investors with higher returns for their incremental risks. Over the...

Robin Powell

Oct 11, 20223 min read

A book we hope will help to change lives

This Thursday, 13th October, Bloomsbury will publish the new book by Robin Powell and JONATHAN HOLLOW, How To Fund The Life You Want ....

Robin Powell

Oct 10, 20225 min read

Has the rise of indexing made active outperformance even harder?

By LARRY SWEDROE Two strong trends have had a dramatic impact on the investment world over the past few decades — the rise of indexing...

Robin Powell

Oct 7, 20224 min read

Investment management, the scary bill you never see

Instead of focusing on cutting your food and fuel bills in the cost-of-living squeeze, find out what you're paying for investment...

Robin Powell

Oct 6, 20224 min read

Is there a link between GDP growth and emerging market returns?

Intuitively, you would expect there to be a positive correlation between GDP growth and stock returns. But what does the academic...

Robin Powell

Oct 5, 20228 min read

UK equity funds fared dreadfully in the recent downturn

Actively managed UK equity funds have not fared as badly as most of their peers across Europe in recent years. But their performance in...

Robin Powell

Oct 4, 20224 min read

Dawn is breaking on a new era for financial advice

Robin writes: For many people, paying an evidence-based adviser to manage their investable assets makes perfect sense. But, let's be honest, many don’t need it, and many more either can’t afford that type of financial advice or at least would struggle to justify the expense. The good news is that, in both Britain and the United States, dawn is breaking on an exciting new era for advisers and consumers. It's an era in which it won't be just the wealthiest in society who enjoy

Robin Powell

Oct 4, 20222 min read